BiggerPockets Real Estate Podcast Sellers Do What No One Expects | Dec. 2025 Housing Market Update
24 snips
Dec 22, 2025 The housing market is showing unexpected positivity as prices stabilize and mortgage rates drop. Amazingly, affordability is on the rise, marking a significant shift after years of decline. However, concerns linger with an increase in underwater mortgages—yet are we really facing a crisis? Sellers are also pulling listings rather than flooding the market, indicating a calculated response to current conditions. This could lead to a market correction instead of a crash, making next year potentially intriguing for buyers and sellers alike.
AI Snips
Chapters
Transcript
Episode notes
Flat National Prices, Strong Regional Divergence
- National prices are roughly flat with Redfin showing a 1.4% year-over-year increase, which Dave frames as a mild correction rather than a crash.
- Regional divergence is large: many deep declines are concentrated in Florida and the Gulf region while the Midwest still posts modest gains.
Refinance If You Can Cut ~0.75% Or More
- Consider refinancing if your mortgage sits in the sevens or higher because a 0.75%+ reduction often justifies refinancing costs.
- Talk to a lender soon since 3.1 million more borrowers became 'in the money' to refinance as rates fell about 1% from peak.
Affordability Is Finally Improving
- Affordability improved to its best level in 2.5 years as rates eased and prices pulled back in inflation-adjusted terms.
- Twelve of the 100 largest markets have returned to long-run average affordability, mainly in the Midwest.